Russian manufacturing runs out of steam in December: PMI

MOSCOW Thu Dec 27, 2012 10:30am IST

MOSCOW (Reuters) - Russian manufacturing growth ran out of steam in December, dragged down by weaker rises in new orders and production, a survey showed on Thursday, suggesting the economy is slowing down.

The HSBC purchasing managers' index's (PMI) headline reading fell to 50.0 points - the exact point separating expansion from contraction - from 52.2 the previous month.

"Stabilization, not stagnation - this is how we interpret the results ... over-production was blamed for why factory output was so weak in December. Therefore, producers were adjusting for softer Russian economic growth," said Artem Biryukov, economist for Russia and CIS at HSBC.

The economy is expected to grow 3.2 percent in 2013, down from 3.6 percent estimated for 2012, due to weaker exports, tightened budget expenditures and a more cautious consumer spending, a Reuters poll showed on Monday.

The PMI index for new export orders fell to its lowest point in more than two years, leading to a near-stagnation in output growth.

The data comes after a pick-up in manufacturing activity in November, when growth in industrial production strengthened to 1.9 percent year-on-year in November, ending a downtrend dating back to August.

"Resumption of stronger growth is still on the agenda, as we estimate moderate stock levels in the manufacturing sector," Biryukov added.

-Detailed PMI data are only available under license from Markit and customers need to apply to Markit for a license.

To subscribe to the full data, click on the link below:

here

For further information, please phone Markit on +44 20 7260 2454 or email economics@markit.com

(Writing by Maya Dyakina, Editing by Hugh Lawson)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage